HousingWire recently spoke with Dominic Iannitti, president and CEO of DocMagic, about eNote adoption.
HousingWire: Where does the industry stand in terms of digital adoption, and more specifically the adoption of eNotes?
Dominic Iannitti: Many lenders were considering, or at least researching, digital implementations when the pandemic hit, putting industry adoption on the fast track.
These days lenders are seeking to leverage mortgage technology to streamline the loan process. Many have digital capabilities in place already and with so many warehouse lenders ready to fund eNotes and servicers ready to support them, along with increased expansion in the investor space, the popularity of eNotes is growing.
HousingWire: Talk to us about DocMagic’s setup process for lenders to get started with Total eClose, eNotes and a secure eVault.
Iannitti: We’ve partnered with many lenders that started with a hybrid model and then made the transition to utilize eNotes and, in many cases to completely paperless closings.
eNotes are a game-changer for risk reduction, processing speed and overall efficiency. By leveraging both eNotes and DocMagic’s award-winning eVault technology, lenders can quickly begin to experience an array of eClosing benefits. Our eVault technology has been the industry leader for many years giving us the expertise to implement and support the critical aspects of eNotes.
DocMagic’s eClosing Team has personally supervised thousands of eClosings. Whether it’s getting set up with MERS, implementing an eVault to securely store notes, partnering with eNote-ready investors, e-warehouse lenders or servicing eNotes, we wrote the playbook on how to make it happen for lenders and their supply chain partners.
HousingWire: What are some of the efficiencies of eNotes, and how will lenders that implement eNotes now benefit compared to those that wait?
Iannitti: The expediency of eNotes carries through the entire process, from originator, to warehouse, investor, custodian, and servicer – in a matter of seconds. Your workforce is more productive, moving loans forward through the pipeline at the speed of a click.
Errors in quality are costly, but especially in this environment. Having everything signed electronically and dated correctly is critical. The eNote can be registered immediately with MERS, allowing loans to be delivered within minutes of closing — that’s real efficiency.
Organizations that implement eNote technology will gain a competitive advantage over those that wait. The efficiencies, benefits and ROI of eNotes are not a nice to have, but a must. This is positively where the industry is heading.
HousingWire: What should lenders be looking for in a long-term eClosing vendor/partner?
Iannitti: Lenders should start by choosing a vendor with experience – thousands of successful eClosing transactions. An inexperienced vendor may not have all of the necessary components in place to do business with other providers in the space.
Lenders should also select a vendor offering all hybrid and fully end-to-end paperless eClosings. The best option is a one-stop shop that provides every element of an eClosing. Why go to one vendor for document generation and another for eNotes?
Finally, look for a vendor that can scale to your future growth. Some vendors have components of this technology, but can they help you scale to thousands of eNotes by the end of the year? DocMagic offers a fully cloud-based service layer and flexible technology designed with capabilities adaptable to every conceivable eClosing option.
